Investment directive approved

The European Parliament has approved the revamped investment services directive, now renamed the Directive on Financial Market Instruments. The European Commission welcomed the move, saying: “The proposed directive will give investment firms an effective ‘single passport’, which would allow them to operate throughout the EU on the basis of authorisation in their home member state.” And it says the directive would give more investor protection. “It is a crucial part of the Financial Services Action Plan.” “I am very pleased that the Parliament has endorsed this important measure,” says internal market commissioner Frits Bolkestein. “This is a vital pillar of an integrated European capital market that we want completed by the 2005 deadline.” In October the European Council reached political agreement on the Investment Services Directive -– although five countries voted against it. The directive is designed to allow investment firms, banks and exchanges to provide services across borders.